The Inland Waterways Authority of India (IWAI) will raise ₹1,000 crore from the market in February and March 2017 to part fund the expansion of inland waterways through government serviced bonds, said Amitabh Verma, Chairman, IWAI.

In addition, IWAI is anticipating a budgetary support as well as extra budgetary allocations of about ₹4,000 crore in the forthcoming Budget, Verma said at the National Maritime Conclave 2017, hosted by the PHD Chamber of Commerce and Industry here on Tuesday. Verma said IWAI planned to roll out ₹500 crore worth of bonds after the Budget and the Reserve Bank’s monetary policy review on February 7, according to a Phdcci release.

The balance amount would be raised in March, he said, adding that the bonds would be totally government serviced so that subscribers are assured on counter guarantees. The Authority has triple AAA ratings for issuance of these bonds from rating agency Crisil. Giving the break-up of the expected ₹4,000-crore budgetary support and extra budgetary allocations, Verma said ₹2,500 crore could come to IWAI with the government introducing an amendment to the Central Road Fund Act latest by the Monsoon session of Parliament, if not the Budget Session.

“The amendment would make a way for the government to apportion five per cent of the money out of highways and roads funds to IWAI to enable it to raise additional resources to undertake its waterways development, which approximately works out to be ₹2,500 crore in 2017-18 alone,” he said, adding that he was also optimistic that the 2017-18 Budget would have a provision of ₹1,000-1,500 crore in terms of extra budgetary allocations.

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